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The attempts by the EU to reduce these different levels of development.

 

The differences in development across the European Union can be considered to be UNSUSTAINABLE because they promote too much growth and possible environmental problems in the CORE, whilst resentment of the wealth of the core and out migration can happen from the periphery.  The EU has tried to deal with these inequalities in a number of ways;

1.     The Common Agricultural Policy – this was a system of subsidies or money paid to farmers, often the poorest people within the EU.  The goals of the CAP were to;

·         Guarantee and maintain agricultural employment and wages

·         Guarantee food production

·         Stabilise food prices

This system led to massive over production of goods and damaging impacts on the environment but did produce reliable food supplies.  It has been criticised because it consumes a huge amount of the EU’s budget without contributing much to the economy.  It has been changed to promote more environmentally friendly farming and to reduce production to sustainable levels.

2.     The European Investment Bank – This is the bank of the EU that provides finance and expertise for sustainable investment projects in Europe and beyond. It is owned by the EU Member States and tries to support EU policy objectives. It is the largest multilateral lender and borrower in the world. It has invested €9 billion into Innovation up to 2012 and promised an extra €60bn between 2013-2015 to promote sustainable growth and jobs to try and finish the economic crisis across the EU. They also invested in 200,000 Small and Medium Enterprises across the EU in 2012.

3.     Urban II Fund

Cities play a major developmental role in the EU, and almost 80 % of the European Community's citizens today live in cities. Many of these cities succeed, but others are faced with social and economic problems.  Various strategies have been tried to combat these problems and Urban II is one of these.  It is paid for by the Commission and the Member States. For 2000-06, the Community's contribution to the initiative amounts to EUR 730 million, exclusively from the ERDF (European Regional Development Fund), for a total investment of EUR 1.6 billion, covering a population of some 2.2 million. To qualify areas must meet at least three of the following conditions:

·         a low level of economic activity and a specific need for conversion due to local economic and social difficulties;

·         a high level of long-term unemployment, poverty and exclusion;

·         a low level of education, significant skills deficiencies and high drop-out-rates from school;

·         a high number of immigrants, ethnic and minority groups, or refugees;

·         a high level of criminality and delinquency;

·         precarious demographic trends;

·         a particularly degraded environment. (source – europa.eu)

Examples of how this funding is used in Newcastle are listed below.

 

4.     Structural Funds

The Structural Funds are a way for the European Union (EU) to narrow the gaps in development among regions and Member States. The structural funds are therefore very important for the EU in trying to help all countries have reasonably even social and economic opportunities. For the period 2007-2013, the budget allocated to regional policy amounts to around € 348 billion, comprising € 278 billion for the Structural Funds and € 70 billion for the Cohesion Fund. This represents 35% of the Community budget and is the second largest budget item.

 

European Union funding in Newcastle

European funding in Newcastle comes from three different places:

1.       European Regional Development Fund (ERDF), supports the growth of a modern, innovative and sustainable economy. It aims to strengthen the entrepreneurial culture, grow the business base and exploit the science, new and renewable energy technology and innovation potential across the city and the region.

2.       European Social Fund (ESF) aims to help people fulfill their potential by giving them better skills and better job prospects.

3.       European Transnational Programmes support European Co-operation between countries

How do we use European Funding in Newcastle?

In Newcastle public, private, voluntary and community groups use European funding to co-fund different types of capital and revenue projects:

  • supporting innovation and technology-led sectors related to NEwcastle Science City and strategic sites,
  • cultivating an enterprise culture and enhancing the competitiveness and growth of existing Small & Medium Enterprises across the city including its disadvantaged areas,
  • improving the city's environment and sustainability in the field of sustainable transport and energy efficiency.

Some past and current projects in Newcastle, supported by the European Union

1.       Newcastle Enterprise Package is a programme to get new businesses started in Newcastle.  It has a £3M budget from the EU to support the development, growth and sustainability of enterprise throughout Newcastle.

2.       The Toffee Factory – a creative work space in the Ouseburn valley, home to companies and with excellent transport links.  Funded by the local council and the European Union.

3.       The Beacon (Centre West and Groundwork) – funded to provide office space and meeting facilities in Newcastle’s west end

 

4.       Newcastle Science City - Newcastle was designated as one of six UK Science Cities in 2005 in recognition of the world-class research being undertaken by its universities and the potential of its science industry base. The city has three main areas of excellence: Ageing & Health, Sustainability and Stem Cells & Regenerative Medicine. Each area has a number of locations dispersed across the city. This is a partnership between Newcastle University, Newcastle City Council and the European Regional Development Fund (who put in £2.3 million).  It includes the centre for life and Science Central, which will be a huge development area close to St James Park.

5.       The Millennium Bridge – part funded by ERDF who put in £3million, The Millennium Commission put in £9.8m together with contributions from English Partnerships, East Gateshead Single Regeneration Budget and Gateshead Council.

     
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